Pilgrim’s Pride announces plant restructuring

Pilgrim’s Pride Corp. has announced several operational changes. Effective Jan. 24, 2014, Pilgrim’s will expand its operations in Russellville, Ala., and Douglas, Ga., to absorb the current fresh poultry processing operations in Boaz, Ala. This consolidation will allow the company to maintain current production levels, more efficiently utilize idle capacity, and generate more than $20 million in incremental margin. In addition, the company will invest approximately $10 million to upgrade its feed mill in Falkville, Ala., and add approximately 100 jobs at the Douglas and Russellville operations.

“Given our decision to consolidate operations, our intent is to offer retention incentives to encourage many of our Boaz team members to remain with the company in different capacities. We are confident these capital improvement projects will position the company, our stakeholders and our team members for success for many years to come,” said Bill Lovette, President and CEO of Pilgrim’s Pride.

Purchased by Pilgrim’s in 2007, Boaz is the company’s smallest operation in terms of processing capacity and employs approximately 1,100 people. Many Boaz employees will be offered opportunities at other nearby Pilgrim’s operations and all employees will be offered retention incentives.

Pilgrim’s, consistent with its long-term strategy to align the company’s core competencies with customer needs, will also invest approximately $25 million to expand large bird deboning capacity and modernize utilities at its Mt. Pleasant, Texas, facility. The company previously announced an investment of $25 million to upgrade its feed mill and processing operations in Enterprise, Ala.